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The True Cost of Employee Turnover and Disengagement

According to Gallup research, employee engagement remains a critical challenge for organizations across industries. As of May 2025:

  • 32% of employees are actively engaged.

  • 51% are not engaged.

  • 17% are actively disengaged

​Disengagement is not a morale issue alone—it is a measurable financial risk.

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Disengaged employees contribute to increased turnover, absenteeism, safety incidents, and declining customer satisfaction. Gallup estimates that disengagement can cost organizations 18–34% of an employee’s annual salary in lost productivity.

For example, an employee earning $80,000 annually may cost an organization more than $14,000 per year if disengaged.

Cost of the New Hire

Recruiting new employees is a necessary part of running a successful organization. However, persistent turnover and limited internal growth opportunities often create a costly cycle of unnecessary hiring. Beyond direct recruiting expenses, this cycle strains leadership capacity, disrupts teams, and inflates operational costs—ultimately impacting organizational performance and the bottom line.​

The calculator below estimates the first-year financial impact of replacing a single employee, based on industry benchmarks and hiring variables. If the results raise concerns, Cavalier Consulting & Leadership works directly with senior leaders to address the underlying causes of turnover and disengagement through practical, on-site, leadership-centered solutions.

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Whether you have identified your needs or not, reach out and we will work with you to develop a customized development plan to help your organization grow.

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